Outlook 05/12: U.S. stock futures set for a lower open after inflation data. The Consumer Price Index rose 4.2% from a year ago, the fastest pace since September 2008. The monthly gain was 0.8%, against the expected 0.2%. The main reasons for the big annual gain was because of base effects, meaning inflation was very low at this time in 2020 as the Covid-19 pandemic caused a widespread shutdown of the U.S. economy. For that reason, Federal Reserve officials see the current rise as temporary and not likely to influence policy.
/ESM21: YVAH 4150 YPOC 4140 YVAL 4127 GAP 4140
/ES Plan: Yesterday market closed balanced, and overnight continues on that way, moving below yesterday's value, so these are the initial balance options for today:
A) If market moves above YVAL 4127 with bullish internals, buy towards YPOC-GAP 4140 and YVAH-ONH 4150.
B) If market remains below YVAL 4127 with bearish internals, sell towards HVE 4109 HVE 4100 and ONL 4905.50
Note: Market looks balanced, so don't be 'too anxious' to trade early. Bad trades occur are when you try to force things to happen, don’t force it. Remember that new record high has been printed overnight, so it's still pending to be revisited at regular trading hours.
Market Movers
10:30 EIA Petroleum Inventories
10:45 Atlanta Fed's Inflation Expectations
1:00 PM 10-Year Note Auction
1:00 PM Fed's Bostic Speech
1:30 PM Fed's Harker Speech
2:00 PM Treasury Statement
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